By Eleanor Wason
LONDON (Reuters) - International supermarket chains must streamline their operations across the globe to focus on markets where they can be one of the top three players, a senior retail banker said on Thursday.
"People are really focusing on podium positions, on positions where they can get proper returns on their investment," said John Woolman, ABN AMRO's AAH.AS managing director for global industries.
"All of the big players are really focusing on building positions where they can at least get to number three and hopefully number one," Woolman said at the Reuters Consumer and Retail Summit in London.
He used the example of Carrefour's (CARR.PA: Quote, Profile, Research, Stock Buzz) reduction from over 30 different businesses worldwide to about 20 with exits from South Korea, Japan and Mexico.
Tesco Plc (TSCO.L: Quote, Profile, Research, Stock Buzz) abandoning Taiwan and Wal-Mart Stores Inc., the world's top retailer, leaving Germany and South Korea, were part of the same trend, he said.
He expected such companies to be more selective in their international expansion with attention shifting from China, where some companies have got lower returns than expected, to India, Russia and the United States.
"There is a very large question mark over Russia, which is almost unique among big emerging markets in that it offers both growth and high returns but actually to date the number of people who have been prepared to go into the Russian market has been relatively limited," Woolman said.
The banker expected any private equity buyer of a European retailer to focus on a reorganization of international operations, alongside a change in property strategy. Continued...
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